Top six short-term technical picks in a weak market: Analysts

MUMBAI: The Indian markets were witnessing selling pressure on Friday as traders resorted to profit booking at higher levels. According to dealers, the market is likely to take a breather after the recent sharp rally and more profit booking can't be ruled out.

Following are the top six trading picks that stand a chance to give good returns in the short term:

Husseini Vadharia, Technical Analyst, Techno Stock Broking

1) Tata Steel: After many days of consolidation, the stock has given a downward breakout. It has slipped below an important support level of Rs 405. Chances of it going down further are high as the market also looks weak.

Sell the stock with stoploss of Rs 412 for a target of Rs 391.

2) Infosys Technologies: The stock has given a downward breakout. MACD is in sell mode and increases the chances of further correction. Volumes have also picked up in the stock.

Sell with a stoploss of Rs 2,560 for a target of Rs 2,450.

Mudit Goyal, Technical Analyst, SMC Global Securities

3) Sobha Developers: The stock rebounded sharply from its early low of Rs 180 and went into a consolidation range with positive bias.

Last traded week, stock came out of its consolidation range on rising volume and continued its upward journey. Select momentum oscillators suggest buying for the upside target of Rs 405-415. Keep a stoploss of Rs 370.

4) Tata Motors: The stock has completed the "Inverted Head and Shoulder" pattern on daily chart and gave the breakout of same on huge buying interest. Then after, it started moving higher and tested the level of Rs 290 on a short notice. Currently it is moving sideways in the range of Rs 260-280 levels with positive bias.

As technically required, it is comfortably trading above its 200 EMA on daily charts which indicates the strength of the stock. Therefore, one can consider buy for the upside target of Rs 300-310 with stop loss of Rs 265.

5) DLF: On the daily charts the stock is forming a bullish Flag pattern, which is a continuation pattern. It suggests that the stock will continue with its uptrend and gain momentum for a fresh upmove after consolidating for the past few sessions of trade.

Currently the stock is trading near the resistance trend line of the flag pattern. Thus, a break above the Rs 242 levels will result to a breakout to the Flag pattern.

We suggest traders to buy now and again on pullback up to Rs 236.50 - Rs 239.00 levels with a stop loss placed Rs 233.80 for targets of Rs 249-256 levels.

6) Lupin: The stock appears to be forming a right shoulder of head and shoulder pattern. A breakdown from the said pattern would be confirmed when the price breaks below neckline support level of Rs 560. The stock has closed below its cluster of moving averages.

Traders can look to sell below Rs 574.40 for the below mentioned targets and place a stop above Rs 590.20. Once the stock price trades below Rs 565, traders can add to short positions with a revised stop placed at Rs 582.60 levels.

We believe that if the Head & Shoulders formation does record a breakdown, the price could decline to the levels of Rs 544 - 528.

Disclaimer: The above report is based on technical views and information given by analysts. Please consult your financial advisor before taking any position in the stocks mentioned.